Crisil Scales Down Arihant Deposit

Credit Rating Information Services of India Ltd (Crisil) has downgraded the fixed deposit programme rating of Arihant Credit Capital Ltd (ACCL) from FB+ to FD, indicating that the issue was either in default or was expected to be in default upon maturity.

A Crisil release said the new rating reflected an adverse change in ACCLs overall risk profile arising out of an inherently risky exposure in the short term inter-corporate deposits market, a substantial erosion in the stock market portfolio and not so diversified funding profile besides the companys overall size and scale of operations, which places it at a relevant disadvantage compared to the other larger players. The FA+ rating assigned to the FD of Symphony Comfort Systems Ltd , engaged in the manufacture of consumer durables, has also been downgraded to FA. The revised rating indicated the degree of safety regarding timely payment of interest and principal was satisfactory, the release said.

 

The revision in rating takes into account the significant drop in Symphonys air cooler sales in 1996-97, which had led to a substantial fall in income on account of the continuing dependence on cooler sales to a large extent, slower off-take of other products, downturn in the consumer durables industry and vulnerability to competition from the unorganised sector across the product range, the release said.

Crisil reaffirmed the P1+ rating assigned to the Rs 18 crore commercial paper programme of Rhone Poulenc (India) Ltd (RPIL), indicating that the degree of safety regarding timely payment on the instrument was very strong.

The agency has also reaffirmed AAA rating to the Rs 200 crore deep discount bond programme and FAAA to the FD of Small Industries Development Bank of India, indicating timely payment on interest and principal was very strong.

Meanwhile, Crisil assigned a P1+ rating to a Rs 40 crore commercial paper programme of Goetze India Ltd.

Crisil also gave the same rating to a Rs 10 crore short-term deposit programme of Hindustan Zinc Ltd.

The rating agency also assigned an AA to a Rs 20 crore non-convertible debenture issue of pharmaceuticals firm Dabur India Ltd.

Crisil also said it assigned a P1+ rating to a Rs 75 crore commercial paper (CP) programme of Dabur and reaffirmed its FAA rating for the firms fixed deposits.

The Rs 139 crore commercial paper programme of Ranbaxy Laboratories was tagged a P1+ by the agency.